VS Code version: 1.37.0 (user setup)
Extension version: [0.18.0] - 2019-07-21
I created a vscode-diff-filesTest folder structure, and then compared the folders using this plugin. The screenshot below shows the folder structure and the resulting Folder view in the plugin.

In the screenshot above, I think fileapricot.txt should be sorted above fileButter.txt.
VS Code version: 1.37.0 (user setup)
Extension version: [0.18.0] - 2019-07-21
I created a vscode-diff-filesTest folder structure, and then compared the folders using this plugin. The screenshot below shows the folder structure and the resulting Folder view in the plugin.
In the screenshot above, I think fileapricot.txt should be sorted above fileButter.txt.